The flaw was definitely inside. I kind of take exception to the word "modified" as applied to sharpening and hand-polishing the surface. Technically, it IS modified from the factory condition, but any sharpening would do that. I really didn't remove much in the way of surface metal, if you can imagine removing a significant amount of THIS steel by hand!!
The thing that most impressed me was the dead-center placement of the flaw, and the way it looked like the edge peeled in half. Like the stock was rolled or folded from 2 pieces. i wish I knew a little more about foundry processes.